Typewritten answers only, please, no handwritten answers. Thank you.

Dan Watson started a small merchandising business in 2018. The business experienced the following events during its first year of operation. Assume that Watson uses the perpetual inventory system. 1. Acquired $30,500 cash from the issue of common stock. 2. Purchased inventory for $24,400 cash. 3. Sold inventory costing $15,200 for $32,000 cash. Required a. Record the events in a horizontal statement model. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, NC for net change in cash and NA to indicate the element is not affected by the event. b. Prepare an income statement for 2018 (use the multistep format). c. What is the amount of total assets at the end of the period? Complete this question by entering your answers in the tabs below.

Record the events in a horizontal statement model. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for fin activity, NC for net change in cash and NA to indicate the element is not affected by the event. (Enter any decreases to account balances and cash outflow a minus sign.)

Complete this question by entering your answers in the tabs below.

Record the events in a horizontal statement model. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, NC for net change in cash and NA to indicate the element is not affected by the event. (Enter any decreases to account balances and cash outflows with a minus sign.)

DAN WATSON MERCHANDISING

Effect of Events on Financial Statement

Event

Assets

=

Stockholders Equity

Revenue

Expenses

=

Net Income

Statement of Cash Flows

Cash

+

Inventory

=

Common Stock

+

Retained Earnings

1.

30,500

+

=

30,500

+

=

2.

(24,400)

+

=

+

=

3a.

+

=

+

=

3b.

+

=

+

=

Total

6,100

+

0

=

30,500

+

0

0

0

=

0

0

Prepare an income statement for 2018 (use the multistep format).

DAN WATSON MERCHANDISING
Income Statement
For the Year Ended December 31, 2018
	0
Operating expenses
	$0

What is the amount of total assets at the end of the period?

Typewritten answers only, please, no handwritten answers. Thank you.